August 28, 2019

Kleiman v Wright, part 5

With a decisive ruling by Judge Reinhart during the August 26 hearing into contempt of court by Craig Wright in the lawsuit brought by Dave Kleiman's estate, the case is more or less over after the judge imposed significant sanctions against Wright. Let's dig into what went down during this hearing.

August 26, 2019

Kleiman v Craig Wright, part 4

It's getting hard to keep up with all the developments around Craig Wright, though thankfully more and more people are investigating and reporting on Twitter and elsewhere, freeing up just enough time for a few deep dives. Let's dig into the August 5 evidentiary hearing in the Kleiman v Wright lawsuit in Florida, with testimony from Steve Shadders, CTO of nChain, and Matthew Edman, expert witness for the plaintiff.

July 6, 2019

Kleiman v Craig Wright, part 3

There has been much reporting on the recent June 28th hearing in the case of Ira Kleiman v. Craig Wright, where the latter testified in person for the first time. Several reporters attended the hearing and relayed baffling events, but those of us who have been following the case were anxious to get a direct look at exactly how things played out. With the court transcript and exhibits in hand, let's go on that journey together.

May 8, 2019

Kleiman v Craig Wright, part 2

As part of the ongoing lawsuit against Craig Wright by the relatives of Dave Kleiman and in response to a court order to reveal details of Wright's supposed bitcoin holdings (including a long hinted-at blind trust), a filing about Wright's supposed bitcoin holdings was recently unsealed. While the bitcoin addresses contained within are redacted, it turns out they're not hard to guess.

April 28, 2019

CoinLab v MtGox: The imaginarium of Peter Vessenes

Recently the MtGox civil rehabilitation trustee, Nobuaki Kobayashi, announced a six month delay in proceedings due to disapproved claims still being disputed. The trustee doesn't refer to it directly, but the elephant in the room causing this delay is Peter Vessenes' CoinLab, who after a failed partnership attempt with MtGox in 2012/2013 is now demanding an outrageous $16B USD from the MtGox civil rehabilitation estate.

There have been various theories floating around how CoinLab could possibly be justifying this number, with little insight into their actual arguments, a problem not helped by CoinLab's attempts to seal official Japanese creditor records in order to conceal their actions. Recently though I acquired a copy of the last round of petitions to the Tokyo District Court, and have spent the last week dredging through the legal Japanese to get to the bottom of the situation.

February 27, 2018

Kleiman v Craig Wright: The bitcoins that never were

Today some news landed about a $10B lawsuit against Craig Wright (the Australian man who claimed to be Satoshi Nakamoto, the pseudonymous inventor of Bitcoin), and it is an interesting read, but unfortunately for anyone involved, its claims have little basis in reality. The lawsuit purports that Wright fraudulently acquired large number of bitcoins owned by Dave Kleiman through forging various documents, but the very existence of those bitcoins in the first place is just another fantasy.

I had previously seen some of the material included as exhibits in the lawsuit, and my opinion was that all the documents that made specific testable claims as to owning bitcoins were relatively easy to debunk as simple backdated forgeries (possibly for use in Wright's alleged tax fraud schemes). I Am Not A Lawyer, but it seems somewhat fitting that Wright now finds himself sued by someone taking many of those claims at face value, as Wright's seemingly only defense would be to allow those prior claims to be proven false.

July 27, 2017

Breaking open the MtGox case, part 1

Earlier today news broke of an arrest in Greece of a Russian national suspected of running a large-scale money laundering operation focused on Bitcoin. The man has since been publicly identified as Alexander Vinnik, 38, and over $4 billion USD is said to have been trafficked through the operation since 2011.

We won't beat around the bush with it: Vinnik is our chief suspect for involvement in the MtGox theft (or the laundering of the proceeds thereof). This is the result of years of patient work, and these findings were surely independently uncovered by other investigators as well. Everyone who worked on the case have patiently kept quiet while forwarding findings to law enforcement, so as not to tip suspects off and to maximize the chances of arrests.

With such an arrest actually happening, we think today might — finally — be the day when we can begin talking about what we've actually been doing all this time and what we found. Thank you for your patience.